How to Become a Cell Phone Dealer

Many of us dream of owning our business some day. One way to do this is to resell various cellular phone products and solutions from big carriers like AT&T, T-mobile, Verizon and Sprint. As a cellular phone dealer, you earn monthly commissions on individual and business customers you activate with the service providers. You also earn profits from cellular accessories you sell. Though these companies are different, the process of becoming a cellphone dealer is the same.

Things You'll Need

• Personal computer
• Internet access

Instructions

1. Go to your county clerk's office and register your business name. Choose a name that reflects the nature of your business. Obtain a Doing Business As (DBA) or Assumed Name Certificate. Visit your state comptroller's website or call its telephone number and incorporate your business if you prefer to operate your business as a corporation. Obtain your Article of Incorporation. Obtain an Employer Identification Number (EIN) if you incorporate or will hire employees.

2. Visit your local bank and open a business bank account using your DBA or incorporation certificate. Cellphone service providers require you to have a business bank account. Open a merchant account with your bank. This allows your business to accept credit cards from Visa, MasterCard, American Express and Discover. You will lose majority of your customers if you don't offer this service.

3. Research major cellphone service providers like T-mobile, Sprint, Verizon and AT&T online (see the Resources section below). Visit their retail stores and note their available cellphones. Ask about commission structure, monthly churn (charge-back frequency and size), training and technical support. Familiarize yourself with their store layout, the furniture and equipment you need for your store like wall hangers, desks, fax machines, business computers and business telephone lines.

4. Visit available retail locations in your area. Contact property owners when you find suitable retail spaces and get more information, including size and monthly rent. Contact the cellular phone service providers by visiting their websites or calling their toll-free telephone numbers. Obtain and complete their dealership application forms. The service providers will either contact you directly or match you with their master dealers like American Wireless (see Resources section below).

5. Complete, sign and submit the dealership authorization forms from the service providers of your choice or your master dealer. You need to complete forms from each service provider. Submit your business registration (DBA or Article of Incorporation) certificates, financial statements, business and marketing plans, and banking information when requested. Wait for the service providers to approve your applications. Attend training classes provided by service providers to learn how to market their products and services.

6. Notify service providers of available retail locations and ask for approval of the locations. Sign leasing contracts with property owners once the service providers approve your dealership application and location. Contact your local telephone service provider and sign up for telephone service. Research and sign up for Digital Subscriber Lines (DSL) or Cable broadband services with dedicated Internet Protocol (IP) address. Cellphone service providers require you to have broadband services with dedicated Internet Protocol (IP) address in your retail location. Contact cellphone service providers, order and pay for cellphone equipment.

7. Open your business. Receive your cellphones and marketing collateral from your service providers. Display your cellphones in your display counters. Post your marketing collateral in strategic locations throughout your store. Inform customers of new deals from the various cellphone service providers.

Tips & Warnings

• Be sure to have enough funds to cover three months of business expenses before becoming a cellphone dealer. This amount varies depending on the various costs. Service providers don't require this but it may take that long for your business to earn a profit. Depending on the size of your cellphone dealership, you may need to hire employees. Be sure to obtain an Employer Identification Number (EIN) if you have employees or if your business is incorporated. Otherwise, your Social Security Number (SSN) will suffice. Attend various free training classes provided by service providers on how to market their products and services.

• Cellphone service providers don't require additional insurance for your business but it is a good business practice to have insurance coverage for losses from fire, flood, wind or theft. Your property owner's insurance doesn't cover your business operations. Don't sign lease contracts until service providers approve the location.

Resources

• Read this Article in Spanish
• Research T-mobile phones and services
• Sprint is a major cellphone provider
• Visit Verizon wireless to research their cellphones
• Research At&t dealership opportunities
• American Wireless is a cellphone master agent